When investing in a rental property, landlord insurance is necessary. Mistakes happen and it's important to be covered in order to protect yourself from occurrences like electrical fires or damage caused by bad tenants to the property.
Though there are many options for types of insurance so you feel more protected. Below are a few types of insurances you can get for your Long Beach rental property, and what they cover.
Landlord’s insurance is usually a requirement of your mortgage agreement. Though not legally required, even if you do not have a mortgage, landlord's insurance is still a great investment. Landlord’s insurance will oftentimes bundle a few coverages in their policy, these should include property damage, lost income, and liability.
Damage to the property can be caused by a number of reasons. In the event that the property or its furnishings suffer from damage caused by fires, short circuits, gas leaks, vandalism or careless tenants.
Even with excellent maintenance there are times you can’t fill your rental due to unforeseen reasons. Lost rental income insurance protects you in case something would cause your property to become uninhabitable. For example pest infestations like rats, termites and roaches require time to get under control. Lost rental income insurance provides temporary rental reimbursement for rent money may not be able to collect.
Liability protection is simply to cover legal or medical costs that might come up if a tenant or one of their guests suffers an injury because of an issue with the maintenance of the property.
Umbrella insurance is designed to protect you and your family when you’ve surpassed the liability limits from other insurance policies including vehicle or property. You may be wondering how umbrella insurance works, it gives you the ability to select a liability limit that best protects you and your assets. Umbrella insurance coverage can include legal defense, like legal fees needed to defend from claims that may never produce a settlement or judgment.
Although the majority of earthquake epicenters in Long beach barely move the needle. Usually small earthquakes between magnitude 1.0 and 2.0. There is a higher risk of earthquakes in California compared to the rest of the country. Worst of all, unlike other natural disasters, earthquakes can’t be predicted ahead of time. We don’t know where or when an earthquake can happen, but we do know they can cause thousands of dollars in damages.The best way to protect your assets from an earthquake is with earthquake insurance.
Earthquake damage is not covered by homeowners or landlord insurance however, your insurance company should offer to sell you earthquake insurance when applying for your policy. Earthquake insurance does have limits on what it covers. It does not cover everything damaged by the event. The intention of earthquake insurance is to put a roof over your head.
Based on southern California’s recent history of droughts, flood insurance may feel unnecessary. Though Long Beach is next to the beach meaning the risk of floods is never 0%. Standard homeowner insurance doesn’t cover flooding, but Long Beach participates in the National Flood Insurance Program allowing property owners to get federally-backed flood insurance. Adding this coverage is most reasonable if your property is in a flood-prone zone.
Many landlords recommend or even require their tenants get rentar’s insurance.
Insuring your Long Beach rental property can be overwhelming. Don’t worry we’re here to help if you need assistance finding the right insurance coverage for your property feel free to call us at (562) 888-0247 or feel free to fill out our
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